The Marginal Propensity to Consume (MPC) Is Computed as the Change

question 70

Multiple Choice

The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:

• A) GDP.
• B) income.
• C) saving.
• D) none of the above.

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Definitions:

Social Identity Theory

A psychological theory positing that a person’s sense of who they are is based on their group membership(s).

Out-Group

A social group toward which an individual feels a sense of competition or opposition, often viewed less favorably than the in-group.

Social Categorization

The cognitive process of classifying people into groups based on shared characteristics such as race, gender, or nationality.

Social Identity

The part of the self-concept including one’s view of self as a member of a particular social category.